accounting
Units
Production
50,000
Sales ($18 per unit)
42,000
Inventory, January 31
8,000
Manufacturing costs:
Variable
$575,000
Fixed
80,000
Total
$655,000
Selling and administrative expenses:
Variable
$ 35,000
Fixed
10,500
Total
$ 45,500
(a) Prepare an income statement using absorption costing.
(b) Prepare an income statement using variable costing.
Homework Answers
Less: Manufacturing costs(total) = $655,000
Less: Selling and administrative expenses (total) = $ 45,500
Income = $55,500
b) Sales = $42000*18 = $756,000
Less: Manufacturing costs(variable) = $575,000
Less: Selling and administrative expenses (variable) = $ 35,000
Income = $146,000
accounting
On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January:UnitsProduction50,000Sales ($18 per unit)42,000Inventory, January 318,000Manufacturing costs: Variable$575,000 Fixed80,000 Total$655,000Selling and administrative expenses: Variable$35,000 Fixed10,500 Total$45,500Prepare an income statement using absorption costing.Prepare an income statement using variable costing.
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